Moderate optimism in the commercial real estate market

According to a survey conducted by GKI in October 2016, a sort of insecurity has started to manifest in the office space market. The utilisation level was increasing in and around Budapest from 2014 until the middle of 2016. In October 2016 GKI measured a 4-point drop in the national office market index (there was no change in Budapest). Rental fee is expected to increase by 2 percent in the Budapest region and in East Hungary. As for the retail property segment, the value of store space in Budapest rose 4 points, while it stayed put in other parts of the country. The logistic property market is characterised by optimism: GKI’s warehouse market index elevated by 7 percent in both Budapest and at national level. Rental fees are likely to go up 2 percent in Budapest and they will grow by 4 percent in West Hungary.